So, I know we’re pretty far removed from the holiday season.
But I want you to take a moment to think about the holiday wreaths that are on people’s doors.
At the beginning of the season, those wreaths are looking beautiful, full of color and design. Then towards the end of the holiday season, as the door keeps slamming and people bump into them, pine needles keep dropping to the ground and they begin to wither away.
Now, I want you to ask yourself: is that your business?
Every year, many agents and teams build their business up to be this incredible, beautiful force. But then over the course of the year, it withers away, forcing them to take time to build it back up to where it was.
And the next year, the cycle repeats itself.
Year after year, it becomes a seasonal roller coaster – one that agents expect, and some even lean into.
But it doesn’t have to be this way.
Tom Ferry recently reminded me of Warren Buffet’s famous quote:
“In business, I look for economic castles protected by unbreachable moats.”Warren Buffet
The deeper and wider the moat, the more your company becomes untouchable. This means, you no longer have to endure a seasonal roller coaster, but instead can continue to grow year after year.
So, how can you build an unreachable moat?
First, you need to know your market, and your target consumer, better than anyone else. You need to understand your clients’ pain points and what they want most out of a real estate transaction. The more you know about their wants and needs, the higher chance you have of meeting those needs.
With this in mind, freely share your market knowledge everywhere, so people know that you are the local expert.
Next, you need to know the economics of your industry. You have to think about what changes will happen ten years down the line and how those changes will affect your business.
You can’t just focus on today’s situation, but instead look at what is happening next week, next year, or even a decade from now. One obvious example is Zillow. Some agents and teams were more concerned with trying to block out the disruptors of the industry, that they haven’t used them to help their own business grow.
If you don’t understand these factors ahead of time, it may hurt you later when times change and other businesses start outdoing yours.
Finally, think about what makes you or your team unique. What is the competitive advantage that sets you apart from other companies?
There are two major areas where a business can distinguish itself: their product or service, and how they create value for customers and employees.
When you fully understand your competitive advantage, you can use it to further grow your business.
Start digging your moat today, so you can get rid of the seasonal roller coaster and invest in and protect yourself, your business, and everyone who works with you.